Assignment 2 for AAM3691 60 marks onl QUESTION 1 1.1 A company is manufacturing building bricks and fire bricks. Both products require two 14 MARKS processes. Brick forming and Heat treatment. The requirements for the two bricks are BUILDING BRICKS 3 hrs rs FIRE BRICKS Forming per 100 bricks Heat treatment per 100 bricks 2 hrs 5 hrs Total costs of the two departments in one month were: Formin Heat Treatment N$ 21 200 N$ 48 800 Units Produced during the month was 130 000 70 000 REQUIRED: MARKS 1.1 Prepare statement of manufacturing costs for the two types of bricks 1.2 Dundee limited undertook a contract for N$500 000 on 1st January 2018. On 31 December 2018 when the accounts were closed, the following details about the contract were gathered Particulars Materials purchased Wages paid General expenses Plant Purchased Materials on hand 31-12-2018 Wages accrued 31-12-2018 Work certified Cash received Depreciation of Plant Work uncertified N$ 100,000 45,000 10,000 50,000 25,000 5,000 200,000 150,000 5,000 15,000 The above contract contained an escalator clauses which read as follows In the event of prices of materials and rates of wages increase by more than 5% the contract price would be increased accordingly by 25% of the rise in the cost of materials and wages beyond 5% in each case It was found that since the date of signing the agreement the prices of materials and wage rates increased by 25% the value of the work certify does not take into account the effect of the above clause REQUIRED: MARKS 1.2 Prepare the contract account. Working should form part of the answers